Editor's note: This piece is an internet classic, outlining the terrible flaws in our current banking system, and how it enriches bankers and powers-that-be at the expense of common people like us. If you have never seen it, you are in for an eye opener! If you have read it before, read it again - it is well worth it. Although originally written in 1980, the article is especially timely today in light of the new bankruptcy law that has been passed by the Senate and will surely be passed by the Congress soon. Read it and think about the world that we live in! Opening yourself to new information is the first step in awakening to the truth about the road we are traveling.

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If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.

-- Thomas Jefferson
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Americans, living in what is called the richest nation on earth, seem always to be short of money. Wives are working in unprecedented numbers, husbands hope for overtime hours to earn more, or take part-time jobs evenings and weekends, children look for odd jobs for spending money, the family debt climbs higher, and psychologists say one of the biggest causes of family quarrels and breakups is "arguments over money." Much of this trouble can be traced to our present "debt-money" system. Too few Americans realize why our founding fathers wrote into Article I of the U.S. Constitution: Congress shall have the Power to Coin Money and Regulate the Value Thereof.

They did this, as we will show, in prayerful hope it would prevent "love of money" from destroying the Republic they had founded. We shall see how subversion of Article I has brought upon us the horrors of which Jefferson had warned.

Copyright edited for length...please see CE's above link to read the entire article.

_________________CrimsonEagleThe war to end all wars can only be fought on the front-lines of the mind.

The greatest deception they have perpetrated is that we need them. Our greatest mistake is that we believe them.

If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.

THE MANDRAKE MECHANISM . . . The method by which the Federal Reserve creates money out of nothing; the concept of usury as the payment of interest on pretended loans; the true cause of the hidden tax called inflation; the way in which the Fed creates boom-bust cycles.

In the 1940s, there was a comic strip character called Mandrake the Magician. His specialty was creating things out of nothing and, when appropriate, to make them disappear back into that same void. It is fitting, therefore, that the process to be described in this section should be named in his honor.

In the previous chapters, we examined the technique developed by the political and monetary scientists to create money out of nothing for the purpose of lending. This is not an entirely accurate description because it implies that money is created first and then waits for someone to borrow it.

On the other hand, textbooks on banking often state that money is created out of debt. This also is misleading because it implies that debt exists first and then is converted into money. In truth, money is not created until the instant it is borrowed. It is the act of borrowing which causes it to spring into existence. And, incidentally, it is the act of paying off the debt that causes it to vanish. There is no short phrase that perfectly describes that process. So, until one is invented along the way, we shall continue using the phrase "create money out of nothing" and occasionally add "for the purpose of lending" where necessary to further clarify the meaning.

So, let us now . . . see just how far this money/debt-creation process has been carried -- and how it works.

Copyright length edit. Please use the above link to read the entire article.

_________________CrimsonEagleThe war to end all wars can only be fought on the front-lines of the mind.

The greatest deception they have perpetrated is that we need them. Our greatest mistake is that we believe them.

Scary isn't it? I mean somebody making you borrow money for things you are not even aware of. LIke money for wars. Money which is borrowed and has to be paid back The Federal Reserve Bank. A private corporation run by bankers to serve their own interests. First I heard of it. And, to deceive you they call it " Federal " just to let you think it is government-like and acting in the common interest.

It is a sickness and is sad. Iraq War anyone? Isn't this the message here?

Here is a great audio tape about the Federal Reserve. It is easy to listen to and very informative, and condemning as well.

Quote:

The Creature from Jekyll Island: A Lecture on the Federal Reserve"G. Edward Griffin exposes the most blatant scam of all history. It’s all here: the cause of wars, boom-bust cycles, inflation, depression, prosperity. It's just exactly what every American needs to know about the power of the central bank."